Significant changes to Danish VAT rules will affect a wide range of fitness, educational and recreational activities starting in 2026. These changes are being introduced as a direct consequence of judgments from the Court of Justice of the European Union (CJEU) (specifically, cases C-449/17 (A&G Fahrschul), C-47/19 (HA), C-373/19 (Dubrovin & Tröger Aquatics) and C-90/16 (The English Bridge Union Limited)) and new guidance from the EC VAT Committee. The CJEU decisions require Denmark to align its VAT exemptions more closely with EU standards, resulting in a new practice for the VAT treatment of various activities. The following outlines the relevant changes based on guidance from the Danish Tax Agency.
The Tax Agency has announced that group instruction for fitness, yoga, dance, crossfit and similar activities will become subject to VAT, and the new rules will also apply to personal trainers and physiotherapists offering group training. However, amateur sports clubs and associations will remain VAT-exempt due to their classification as “amateur sport” rather than “instruction.”
While a standard VAT rate of 25% under the new rules may suggest a similar 25% price increase for members, businesses will have the right to deduct input VAT, and the special Danish payroll tax will no longer apply to the covered activities. The actual price impact will depend on the business’ cost structure and the proportion of VAT-deductible expenses.
A key exception will be made for instruction provided to children and individuals under age 30, which will remain VAT-exempt. This will require businesses to track members’ ages and allocate revenue accordingly. The government has also proposed a tax deduction for adults over 30 to offset the increased cost of participating in fitness activities, but details are still pending.
The teaching of single subjects will no longer be VAT-exempt, which will generally lose their VAT-exempt status as “school and university education.” The new practice will affect adult education providers such as evening schools, folk high schools and universities offering single-subject courses. However, some institutions may still be able to qualify for exemption as “cultural activities” if the subject is considered part of Danish culture based on vision, history and societal significance and whether the institution is eligible for subsidies under special legislation in this area. A case-by-case assessment will be needed in all instances.
Conversely, the VAT exemption for the professional training of private individuals will be expanded. From 1 January 2026, training that is mainly intended for use in a participant’s profession or for retraining or starting a new professional activity will be VAT-exempt even if it has some private application. The main purpose of the training must be for professional purposes, and the training must not be consultancy in nature.
Courses for companies and institutions will remain VATable if operated for profit. Providers can apply for a three-year retrospective adjustment if they believe their training should have been VAT-exempt under the new rules.
Changes to Danish practice have also been announced to clarify that activities without a significant physical element—such as bridge, chess and backgammon—will no longer qualify as VAT-exempt amateur sports. As from 1 January 2026, clubs and associations offering these mental sports will have to charge 25% VAT on membership fees and tournament participation if their taxable annual turnover exceeds DKK 50,000. This change will require many small, volunteer-driven associations to register for VAT, issue compliant invoices and manage ongoing VAT reporting. The increased administrative burden and potential price increases may necessitate budget adjustments and will require clear communication with members.
The above changes to Danish VAT practice will have a significant impact on many organisations, requiring new administrative processes, pricing strategies and compliance efforts. Providers should consider taking the following actions:
Kasper Harvey Hansen
Louise Eide Hartung
BDO in Denmark
VAT on Fitness, Yoga, Dance and Similar Activities
The Tax Agency has announced that group instruction for fitness, yoga, dance, crossfit and similar activities will become subject to VAT, and the new rules will also apply to personal trainers and physiotherapists offering group training. However, amateur sports clubs and associations will remain VAT-exempt due to their classification as “amateur sport” rather than “instruction.”While a standard VAT rate of 25% under the new rules may suggest a similar 25% price increase for members, businesses will have the right to deduct input VAT, and the special Danish payroll tax will no longer apply to the covered activities. The actual price impact will depend on the business’ cost structure and the proportion of VAT-deductible expenses.
A key exception will be made for instruction provided to children and individuals under age 30, which will remain VAT-exempt. This will require businesses to track members’ ages and allocate revenue accordingly. The government has also proposed a tax deduction for adults over 30 to offset the increased cost of participating in fitness activities, but details are still pending.
VAT on Single-Subject Adult Education
The teaching of single subjects will no longer be VAT-exempt, which will generally lose their VAT-exempt status as “school and university education.” The new practice will affect adult education providers such as evening schools, folk high schools and universities offering single-subject courses. However, some institutions may still be able to qualify for exemption as “cultural activities” if the subject is considered part of Danish culture based on vision, history and societal significance and whether the institution is eligible for subsidies under special legislation in this area. A case-by-case assessment will be needed in all instances.
Expansion of VAT Exemption for Professional Training
Conversely, the VAT exemption for the professional training of private individuals will be expanded. From 1 January 2026, training that is mainly intended for use in a participant’s profession or for retraining or starting a new professional activity will be VAT-exempt even if it has some private application. The main purpose of the training must be for professional purposes, and the training must not be consultancy in nature.Courses for companies and institutions will remain VATable if operated for profit. Providers can apply for a three-year retrospective adjustment if they believe their training should have been VAT-exempt under the new rules.
VAT on Mental Sports (e.g., Bridge, Chess, Backgammon)
Changes to Danish practice have also been announced to clarify that activities without a significant physical element—such as bridge, chess and backgammon—will no longer qualify as VAT-exempt amateur sports. As from 1 January 2026, clubs and associations offering these mental sports will have to charge 25% VAT on membership fees and tournament participation if their taxable annual turnover exceeds DKK 50,000. This change will require many small, volunteer-driven associations to register for VAT, issue compliant invoices and manage ongoing VAT reporting. The increased administrative burden and potential price increases may necessitate budget adjustments and will require clear communication with members.
BDO Insights
The above changes to Danish VAT practice will have a significant impact on many organisations, requiring new administrative processes, pricing strategies and compliance efforts. Providers should consider taking the following actions:
- Determine which activities will become VATable and which may remain exempt;
- Prepare for new registration, invoicing and reporting requirements and adapt internal systems and processes as needed;
- Communicate changes and potential price adjustments to members and participants; and
- Seek professional advice to navigate the new rules and identify any grey areas.
Kasper Harvey Hansen
Louise Eide Hartung
BDO in Denmark